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File and Folder Limit

I hit a very strange problem when moving .jpg files to the USB drive.  I cannot put more than 150 files on the drive (less than 30% of memory capacity).  I get an error message than no new files or folders can be created.  I get the same message if I try to create a file or folder manually after that.  I am using Windows Explorer to move the files and have hit the problem with Windows XP and Windows Vista.   Any ideas what I am doing wrong?
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Re: File and Folder Limit

what file system is your device formatted in? if it is FAT there is a limit to the amount of files that can be stored on the root directory. you can either create subdirectories or try reformatting the drive to FAT32.